Last month, HMRC released its accredited official statistics Corporation Tax statistics commentary 2024, reporting the latest record year, since its inception in 1965.

Key Highlights:

Total Receipts and Liabilities:

• In the financial year 2023 to 2024, the UK collected a record breaking £93.3 billion in total receipts from all Corporate Taxes. This marked a significant increase of £8.8 billion (a 10% increase) compared to the previous year.
• The total liabilities for all Corporate Taxes in the same period amounted to £81.5 billion, up from £66.1 billion in the previous year.

What’s Included in Corporate Taxes?:

• Corporate Taxes encompass various components:
  • Corporation Tax (CT): This includes both onshore and offshore CT.
  • Bank Levy
  • Bank Surcharge
  • Residential Property Developer Tax (RPDT)
  • Energy Profits Levy (EPL)
  • Electricity Generator Levy (EGL)

Headline Findings:

• The increase in total Corporate Tax receipts was primarily due to two factors: the rise in the Corporation Tax main rate to 25% and the introduction of the EGL.
• The Financial and Insurance sector (excluding Bank Levy and Bank Surcharge) contributed the most to CT receipts, accounting for £20.2 billion or 24% of the total.
• Approximately 6,000 companies (0.4% of all companies with tax obligations) contributed 60% (£44.7 billion) of total CT liabilities in the financial year 2022 to 2023.

Receipts Breakdown:

• Onshore CT Receipts: These reached £82.3 billion in the financial year 2023 to 2024, reflecting an impressive increase of £11.1 billion (16%) from the previous year.
• Offshore CT Receipts: However, offshore CT receipts were £3 billion, showing a decrease of £3.6 billion (55%). This decline can be attributed to lower oil and gas prices compared to their peaks in the previous year.

The UK’s Corporation Tax landscape saw significant changes, driven by rate adjustments and new levies. The Financial and Insurance sector played a pivotal role, and a small number of companies carried a substantial share of the tax burden. If you’d like more detailed data, feel free to explore the full report on the official GOV.UK page.